Your rental property investment needs tending, from keeping up with repairs to ensuring you get paid on time. If your current property management company isn’t giving your investment the attention it deserves, it’s time to shop for a new manager.
Why Change Managers?
Consider a change when your current property management company isn’t providing all the services you need or its performance raises red flags.
This Realtor.com checklist shows what you should be getting from a property manager:
- Set rates based on expertise in the local market.
- Market your cabin across major online booking platforms.
- Deal with bookings and payments.
- Handle cleaning and maintenance, including emergencies.
- Track your cabin’s financial performance.
- Provide tax information.
If these red flags pop up, it’s time to reconsider:
- Your rental isn’t attracting enough guests.
- The management company doesn’t adjust rental rates to reflect the local market.
- You aren’t getting full service, including marketing, booking, cleaning, and maintenance.
- Your manager sticks you with hidden charges like credit card fees.
Do Your Homework
What does your current contract say about the owner’s grounds for termination? Would it be simpler to let the current contract expire, or do you need to end the relationship sooner? Has the management company failed to live up to specifics in the contract?
Write down your reasons for a change and list specific examples. Decide whether you want to work out solutions with your current company or find a new one.
Find a New Property Manager
Take three steps to find a new cabin rental management company:
- Know what you want. More guests over more nights? A different fee structure? Greater flexibility in using your cabin when you want? Make a list of what you’re seeking.
- Research management companies. Talk to owners of neighboring rental cabins. Ask a real estate agent for recommendations. Check out online reviews.
- Interview the candidates. Don’t wing it. Prepare questions and ask frankly about hidden fees, contract length, limits on owner use, and other details.
End the Old Business Relationship
When you’ve found your new manager, write a termination letter. Include information about the new manager so the two firms can communicate. Find out if you need to alter any information with local or state licensing agencies.